New Delhi: India’s journey toward the vision of Viksit Bharat requires a robust and diversified financial ecosystem capable of mobilising long-term capital at scale, NITI Aayog CEO B.V.R. Subrahmanyam said on Thursday.
Releasing a report titled “Deepening the Corporate Bond Market in India”, here, the CEO said this report underscores how a deeper and more efficient corporate bond market will be central to enabling that transition by expanding market access, improving liquidity, and strengthening investor participation.
In addition to offering a comprehensive overview of India’s corporate bond market landscape, the report outlines a reform-oriented roadmap to build a deeper, more resilient, and inclusive bond market capable of supporting India’s long-term investment requirements.
“The report includes a comparative analysis with global markets, highlights structural gaps, and offers targeted recommendations to strengthen legal, regulatory, and market infrastructure frameworks,” an official release said.
A deep and vibrant corporate bond market is essential for mobilising long-term, low-cost financing that India needs to realise its developmental goals, it said.
By diversifying funding sources beyond the banking system, corporate bonds enable more efficient risk sharing, strengthen financial stability, and support productive sectors with stable, market-based capital.
As India advances toward its broader vision, a well-functioning bond market becomes a critical pillar for sustaining investment and supporting long-term growth.
Although, according to the report, the market has expanded over the past decade with rising outstanding volumes, improved regulatory frameworks, and increasing investor interest, it remains constrained by limited market depth, concentrated investor profiles, and modest secondary-market activity.
India’s corporate bond market holds substantial untapped potential for further deepening, it said.
The report highlighted the opportunity for the corporate bond market to play an even greater role in mobilising capital for infrastructure, MSMEs, green and transition finance, and emerging sectors.
(IANS)
